Token Market Dilution And Broad Underperformance Conditions

Issue 83 Edition 2026-03-24 7 min read

General

Sources: 1 • Confidence: Medium • Updated: 2026-03-25 17:52

Key takeaways

Ippolito claims the number of tokens increased by about 35 million over the last couple of years while total market cap was roughly flat over the last four years.
Blockworks launched a product called Blockworks Investor Relations (Blockworks IR) for standardized, transparent, data-driven investor-facing reporting for onchain businesses.
Because most onchain business activity is visible in real time, the IR problem is described as translating raw onchain data into a clear, credible investor narrative.
Ippolito predicts that within roughly two years, protocols and exchanges will shift from traditional quarterly IR materials toward proactive, personality-driven, real-world event-style investor engagement with live-updating data.
Ippolito attributes token underperformance to a trust problem driven by market factors (too many assets and unclear value accrual) and information factors (missing data, lack of disclosures, and non-standard reporting).

Ippolito claims the number of tokens increased by about 35 million over the last couple of years while total market cap was roughly flat over the last four years.
Ippolito claims the average market cap per token is down about 50% from 2021.
After adjusting for token supply inflation, Ippolito claims the average token price is down about 80%.
Ippolito claims that since 2022, token cohorts show declines across market cap, average price, and median price, while Bitcoin is the main asset that has worked.
Ippolito claims an 'institutional bull market' has not benefited most tokens despite broader positive crypto developments.

Blockworks launched a product called Blockworks Investor Relations (Blockworks IR) for standardized, transparent, data-driven investor-facing reporting for onchain businesses.
Blockworks IR was launched at the Digital Asset Summit in New York with BNB and JITO as inaugural clients.
Blockworks IR is described as a three-part stack: standardized data support, IR services (e.g., quarterly reports and earnings calls), and an end-to-end IR workflow platform.
The Blockworks IR platform includes a branded investor-relations website intended to centralize protocol information in one place, analogous to a public-company IR page.

Because most onchain business activity is visible in real time, the IR problem is described as translating raw onchain data into a clear, credible investor narrative.
Investor expectations in crypto are shifting toward more transparency, standardization, and professionalism as institutional capital increases.
Ippolito asserts that standardized and accessible information is now table stakes for token issuers and that the industry should lead on basic disclosure rather than waiting for regulators.

Ippolito predicts that within roughly two years, protocols and exchanges will shift from traditional quarterly IR materials toward proactive, personality-driven, real-world event-style investor engagement with live-updating data.
Blockworks IR is intended to provide engagement analytics and investor identification insights based on onchain behavior to help protocols target and understand their investor base.
Blockworks plans a forthcoming 'Blockworks agent' positioned as an AI-like assistant to reduce reliance on expensive external IR firms.

Ippolito attributes token underperformance to a trust problem driven by market factors (too many assets and unclear value accrual) and information factors (missing data, lack of disclosures, and non-standard reporting).
Ippolito argues that poor information and lack of transparency contribute to bad market structure and enable avoidable industry 'own goals'.

Ippolito predicts that within roughly two years, protocols and exchanges will shift from traditional quarterly IR materials toward proactive, personality-driven, real-world event-style investor engagement with live-updating data.

What is the actual adoption rate of Blockworks IR across protocols (number of clients, retention, and expansion) beyond the two named inaugural clients?
What specific metrics, definitions, and methodology underpin the claims about token count growth, flat market cap, and average/median token price declines?
Does the correlation between onchain revenue/fees and token prices measurably change in 2025 as claimed, and does it vary by sector or token design?
Which disclosure artifacts are considered 'table stakes' by institutional allocators in this context (dashboards, risk disclosures, token supply schedules, governance reporting, treasury reporting, etc.)?
What is the pricing structure for Blockworks IR (platform fees, services retainers, per-report costs), and what budgets/protocol sizes it targets?

Token underperformance may persist if token supply growth outpaces aggregate market cap, concentrating gains in a few assets. Read through is lower odds of broad beta returns unless value accrual and disclosures improve.
Standardized, investor facing reporting could become a competitive differentiator for protocols as institutional expectations rise. Better disclosure may narrow trust discounts and improve capital access for issuers that adopt it.
IR engagement may shift from quarterly artifacts to live, event driven narratives powered by real time onchain data, increasing the importance of ongoing transparency and communication quality versus periodic updates.

Evidence that token count growth continues while total market cap remains broadly flat, alongside continued dispersion where only a small subset of assets drive returns.
Material adoption of standardized IR surfaces across protocols and exchanges, shown by increasing client counts, retention, and recurring IR rituals like regular reports and earnings style calls.
Institutional allocators explicitly requiring standardized dashboards and disclosures for allocation decisions, and observable market premium for issuers with higher quality, consistent reporting.

Market cap growth meaningfully outpaces token supply growth and broad based token performance improves, weakening the dilution and concentration narrative described in the briefing.
Protocols and exchanges do not adopt standardized IR practices at scale, with limited client traction, poor retention, or abandonment of recurring reporting rituals.
No observable linkage between improved disclosure and better market outcomes, with trust issues persisting and token prices remaining disconnected from onchain business activity despite richer reporting.